Business | Aviation
Saudi airline denies it plans expland fleet
Saudi Arabian Airlines is not planning immediate aircraft orders and does not know how much it would spend on any future purchases, a company spokesman said yesterday.
- Reuters
- Published: 00:00 January 8, 2007
Riyadh: Saudi Arabian Airlines is not planning immediate aircraft orders and does not know how much it would spend on any future purchases, a company spokesman said yesterday.
Last week, the Business magazine quoted unnamed sources as saying the firm was discussing with Airbus and Boeing the purchase of $12 billion of aircraft.
"Up to now, we don't have any information on the amount that will be spent on this transaction if it ever takes place," the spokesman, who declined to be identified, said when asked to comment on the Business report.
Decisions to buy aircraft for the state-owned firm are normally taken by the General Authority of Civil Aviation (GACA).
A rapid rise in demand and the liberalisation of domestic flight services has raised the flag carrier's needs for new aircraft, he said. Director General Khalid Al Mulhim said in November the firm had a more immediate need to lease rather than purchase aircraft and that it would probably not make purchases for four to five years.
"There are of course plans to buy medium and long-haul aircraft in the medium to long term, but no funds have been allocated by the state for this purchase," the spokesman said in reference to the 2007 budget.
Mulhim said passenger figures were expected to rise by up to 15 per cent a year and the number of Muslim pilgrims visiting the country could rise to 20 million in 10 years from 3.5 million.
The last major purchase the airline made was a deal in 1995 with Boeing for 61 aircraft, including several 747 aircraft.
In 2005 it bought 15 Embraer aircraft for $400 million.
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